The Following Budget Data Pertain to the Machining Department of Yolkenverst

question 162

Multiple Choice

The following budget data pertain to the Machining Department of Yolkenverst Co.:The company prepared the budget at 85% of the maximum capacity level. The department uses machine hours as the basis for applying standard factory overhead costs to production.
During the year the Machining Department produced 50,000 units, consuming 127,500 machine hours and incurring $433,500 of fixed overhead. For the current year the department has a fixed overhead production volume variance, rounded to the nearest whole dollar, of:

• A) $0.
• B) $3,400 unfavorable.
• C) $3,600 unfavorable.
• D) $7,000 unfavorable.
• E) $8,500 unfavorable.

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Definitions:

Biological Constraints

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Associative Learning

The process by which an individual learns the connection between two stimuli, or between a behavior and a response.

Preparedness

The state of being ready and able to deal with upcoming challenges or emergencies, often involving planning and proactive measures.

Fear of Rats

An intense and irrational aversion or panic at the sight or thought of rats, often categorized as a specific phobia.